Leerink Partners analyst Whit Mayo reiterated a Buy rating on HCA Healthcare (HCA – Research Report) yesterday and set a price target of $390.00.
Whit Mayo has given his Buy rating due to a combination of factors that highlight HCA Healthcare’s strong performance and potential for growth. The company’s first-quarter results demonstrated robust demand and margin growth, despite some investor concerns about volume growth and hurricane recovery impacts. HCA is operating at a higher run-rate, excluding the incremental DPP, and there is potential upside from hurricane recovery efforts and favorable trading of DPP with anticipated approval in Tennessee.
Furthermore, HCA recorded a significant year-over-year benefit from DPP, which exceeded initial plans, and the 2025 outlook for DPP was raised. The company also showed strong outpatient revenue growth driven by an improved mix, despite a decline in outpatient cases. Whit Mayo also adjusted the EBITDA forecasts upwards for 2025-26, reflecting confidence in HCA’s financial health, while slightly lowering the price target based on a revised valuation multiple, aligning with HCA’s historical performance.
In another report released yesterday, KeyBanc also maintained a Buy rating on the stock with a $370.00 price target.
Based on the recent corporate insider activity of 66 insiders, corporate insider sentiment is neutral on the stock.